"الملف 38/3 I، شركة امتيازات النفط المحدودة: امتياز قطر" [و‎‎٧‎٨] (٤٨٤/١٦٠)

C ONF TDF.FT TA L
Petroleum Concessions Ltd
DC/SA.2/3425
7£ /K V'13
10th April, 1943
Ly dear Wakefield
You will remember that the majority of the Trucial
Coast Shaikhs demand payment of our concession obligations
in silver. With the knowledge and o par oval of F.B.TWs.
Political Agent, Bahrain) who has in the past authorised '
export from Bahrain, their demands have been complied with
to date.
Cur Managing Director gave the following ruling in this
connection
f, The Company agrees to bear the extra cost of payment
"in silver but whether or not we should continue’ to
"pay in silver is a matter for the Political Agent to
"decide and you should abide by his decision."
2. The annual concession payment to the Shaikh of n atar
of Rs.3,20,000 odd is due on May 17th and w e had arranged
with the Eastern Bank, Bahrain to bring this in silver from
Bombay to Bahrain this month. The Manager, the Eastern Bank,
Bahrain informs us today that the Beserve Bank Currency
Department, India, refuse to allow the shipment of the"
silver i^upees for the purpose required (i.e. oil concession
payments). It is assumed that this refusal will not aonly
to this condignment alone, but all future concession payments
will come under a similar ban.
3. You will understand that it is not practicable even if
it were desirable for us to obtain the required silver by local
purchase here in Bahrain.
4. We feel that it is reasonable for the Bhaikh of batar
to ask for silver under the existing conditions on the
Trucial Coast. It is understood that in Dubai and Sharjah
from 4 to 10 c $ is charged on notes. British Overseas Airways
and Messrs. Gray Mackenzie in these locations demand payment
in silver. Under these circumstances, it is impossible for
us to convince the Shaikhs that their claims to silver are
unreasonable and they should be prepared to accent losses on
notes as unavoidable and a result of the war.
5. We feel that the situation is such that we have no
alternative but to seek the assistance of TT.M’s. Government.
It would seem that the Shaikhs should be Inducdd to accept a
position in which they and all classes of the communities In
their Sheikhdoms accept notes in all circumstances,
• If this is not feasible, perhaps the Shaikhs could be
Informed formally by H.B.M’s. Political Agent that the Company
is within Its rights in making payments In notes which are
legal tender.
7. The above possible solutions to the Company’s problem
assume that the Reserve Bank of India cannot he prevailed upon
to re-consider its decision.
/ 8. Whatever